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In Gujarat, the Pradhan Mantri Aawas Yojna [PMAY] has gain momentum and thus the Credit-Linked Subsidy Scheme (CLSS) under this flagship programme has reached the disbursal mark of approximately Rs. 1,500 crore across the state in merely two-and-half-months.

The data compiled by Gujarat’s State Level Bankers’ Committee (SLBC) shows that the net subsidy disbursed under CLSS witnessed a growth of 58% in the tenure from 13 February 2019 till 30th April 2019.

The banking experts feel that the Credit-link subsidy scheme is a hit among the beneficiaries and this is growing consistently. The State has also witnessed a growth of beneficiaries from 1.21 lakh to 1.73 lakh in the same period.

In June 2015, the credit-linked subsidy scheme was introduced in the CLSS to extend financial support to the homebuyers falling under different sections like the Economically Weaker Sections [EWS], Lower Income Group [LIG] and Middle Income Group [MIG]. From January 2017, the borrowers received an interest subsidy of 6.5% per annum on home loan to the maximum value of Rs. 6 lakh for EWS and LIG category.

Similarly, the interest subsidy of 4% and 3% are offered on the loans amounting Rs. 9 lakh and Rs. 12 lakh, respectively. However, the homebuyers falling under the MIG category have a maximum tenure of 20 years to repay the home loan amount.

The sources close to SLBC said that the Government prefers to release the disbursal amount in bulk instead of release the same on case to case basis. The home loan applications have also increased from January to March this year. Hence, the disbursal amount has also gone up, the source informed.

The sources also claim that the maximum cases of disbursals are reported from Ahmedabad followed by Surat, Rajkot and Vadodara. The property market professionals, however, feel that the awareness between the buyers and seller has resulted in the increasing number of applications and disbursal of subsidy.

The real estate experts feel that the continuous launch of residential projects and the improving market conditions have resulted in this clearing of stocked up inventory. Also, the disbursal of subsidy particularly for the ready to move in housing projects is the main reason behind this increase.